$4$

Multiple Choice

$0$ points

The main guidance on equity$-$method reporting, found in ASC $323$ and $325$ requires all of the following except:

The investor's share of the investee's discontinued operations should be reported.

The investor's share of the investee's prior$-$period adjustments should be reported.

Continued use of the equity$-$method even if continued losses result in a zero or negative balance in the investment account.

Preferred dividends of the investee should be deducted from net income before the investor computes its share of investee earnings

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